Real Estate Notes Martin Sinderman
Office Depot to occupy new digs downtown
A vacant building on Spring Street will be the new home of Office Depot. Kim King Associates Inc. expects Office Depot to take the 15,000 square feet at 859 Spring St.
"We've got two buildings we've been trying to fill, one at 859 Spring St. and the other at 866 West Peachtree St.," said President Beau King, who said he hopes to find another retailer to take the 30,000 square feet at 866 West Peachtree St. "We want to add to the retail density in the area."
Kim King Associates' construction subsidiary, YLH Construction Co., will make about $600,000 in improvements to the 859 Spring St. building's façade prior to Office Depot relocating from its 14th Street location, King said. "It's a gnarly little building," he said.
The façade renovation should begin in the next 30 days.
Four Seasons Takes 40K At Riverwood
Four Seasons Health Care, aka The Healthfield Group Inc., has leased 40,000 square feet at the 503,455-square-foot Riverwood 100 office building, located at 3350 Riverwood Parkway in the Cumberland/Galleria submarket. The home-health-care provider will be moving its corporate headquarters from 6666 Powers Ferry Road in July, according to Duncan Gibbs of The Staubach Co., who represented the company in the transaction. The deal brings the building to the 94 percent-leased mark, according to Dean Giordano of ING Clarion Realty Services LLC, who did the in-house representation for the building's ownership in the transaction.
Fair skies for Fairway
Fairway Investments LLC of Birmingham, Ala., has bought The Shops at Hamilton Mill in Gwinnett County.
Hamilton Mill Shops LLC sold the 43,520-square-foot Dacula shopping center for $8.9 million March 8.
The Shops at Hamilton Mill are made up of seven buildings, ranging in size from 4,800 to 8,000 square feet.
Tenants include Mellow Mushroom, a day spa, a children's specialty furniture store and a sports-themed restaurant. Primary Capital Advisors arranged The Shops at Hamilton Mill sale.
Fairway Investments also owns 80 percent of Barrett Market Center shopping center in Kennesaw and is a partner in Barrett Summit, a three-building office complex in the same market, said Sims Garrison, Fairway Investments' chief financial officer.
A.C.T. Makes Apartment Buy
A.C.T. (Atlanta Chinatown) Investments Inc. has purchased Hampton Bridge Apartments, a 122-unit apartment community at 3395 Peachtree Industrial Blvd.
The company was represented by Peter Greyling of Richard Bowers & Co.
The purchase price was $8.7 million. A.C.T. Managing Partner Peter Chang has announced plans to convert the property to condominium use; according to Greyling, approximately 40 percent of the units have been sold to date. Chang also is a member of the partnership that, earlier this year, announced plans for the mixed-use redevelopment of a 30-acre tract adjacent to DeKalb Peachtree Airport.
Specialty Deal at Three Ravinia
Berkley Specialty Underwriting Managers LLC has signed on for 16,403 square feet of office space at the 804,528-square-foot Three Ravinia Drive. A specialty insurance underwriting unit created by W. R. Berkley Corp. (NYSE: BER) last summer, the company previously was in space at Perimeter Crossing at Lake Hearn. Dale Lewis of Carter represented Berkley in the transaction, while landlord CRT Properties Inc. (NYSE: CRO) was represented in-house by Kay Younglove.
Cobb Place snagged by SCI
Los Angeles-based SCI Real Estate Investments bought Cobb Place shopping center for $60 million.
SCI Real Estate bought the 320,000-square-foot shopping center at 840 Barrett Parkway in Kennesaw from Birmingham, Ala.-based A.B./Cobb Place L.P. Richard Walter and Donald MacLellan of Faris Lee Investments in Irvine, Calif., represented the buyer. The seller represented itself. Greenwich Capital arranged the financing. "The Cobb Place shopping center transaction was challenging because we had to close within a 45-day time frame to meet the institutional seller's objectives," said Walter, president of Faris Lee Investments. "The other critical aspect to closing the transaction was crafting a creative financing solution to meet the needs of the buyer." Cobb Place shopping center was renovated over the past 24 months. The center is 97 percent occupied.
Hospitality Market on the upswing
Both leisure and business travelers are going to find less room at Atlanta-area inns this year, according to a recent "Hospitality Research Report" from Marcus & Millichap.
"An expanding local economy should help raise occupancy to 60.4 percent in 2005, from 58.7 percent in 2004," the report noted. Meanwhile, local average daily rates (ADRs) increased 3.2 percent, to $76.18, during 2004, and already are up another 4.2 percent so far this year. At the same time, "RevPar," a performance measure derived by taking total revenue during a given period and dividing it by the number of rooms available, increased 8.1 percent to end last year at $44.69.
Some 1,100 new hotel rooms were added to the local inventory last year, the report states, a number that includes the 422-room InterContinental Buckhead. Only 611 rooms are slated to come on line in 2005, according to the report.
Madison's mixed-use plans
Madison Retail LLC closed March 21 on a 2.2-acre parcel fronting Town Center Park where it plans to build a mixed-use project. The $1.15 million parcel is the second of four sold by the city of Suwanee to developers working toward the master plan for the new Town Center. Madison Retail plans to build a 31,200-square-foot, three-story building that will include residential units as well as office and retail space. Construction already is under way on the first building at Suwanee's Town Center, a 42,000-square-foot structure being built by Main Street Corners LLC. "This is going to be a product that the city and the community will be proud of," said developer G.K. Johnson. "There will be a higher level of merchants than those you find in a typical strip center."
Johnson expects tenants to include high-end restaurants, a home interior design business, a dental office and an upscale salon. Construction is expected to begin later this spring.
In addition to Johnson, Madison Retail principals include John Williams, founder of Post Properties Inc., and Steve Whisnant. The firm also has a 12-month option on another 1.7-acre tract at the Town Center site.
The city of Suwanee purchased the 13 acres that comprise the Town Center mixed-use area in November 2002, using a low-cost urban redevelopment loan. The city also purchased 10 acres through its open space program for the adjacent Town Center Park, which opened in December 2003.
Intown Industrial Investment Sale
Jack Anderson of Grubb & Ellis Co. represented Norsca Associates L.P. in its purchase of a 284,000-square-foot warehouse/light assembly building at 1200 White St. S.W., near downtown Atlanta. Bill Doran of Carter represented the seller, W.W. White Street LLC. The building is on 15.15 acres and is 100 percent-leased by Czarnowski Display Services Inc., a Chicago-based exhibit services company. The price tag was $7.8 million.
Sembler signs Perimeter tenants
The Sembler Co. is signing up tenants for Perimeter Place, a 42-acre mixed-use development near Perimeter Mall.
Leases signed in March include Office Max, brokered by Julie Solomon, founder of Retail Insight, and Rob Solganik of Terra National Real Estate Group in Brecksville, Ohio; Drexel Heritage and Henredon Furniture stores, both brokered by Solomon and Jay Chambers; and Panera Bread Co., brokered by Carol Michalik of H&S Brokerage Co.
-- Staff writer Lisa R. Schoolcraft contributed to this column. If you have news for Real Estate Notes, contact David Allison at (404) 249-1039; fax, (404) 249-1058; or e-mail (email@example.com).